You Can Earn Seven Percent
- William Jordan, Financial Advisor
Remember when you could invest your money in a CD at 7%? Those were the days weren’t they? Excellent yields on your money and great security knowing it was safe.
Well nothing is quite like a CD but today interest rates on a one year CD are hovering right at 1%. At those levels you aren’t even keeping up with inflation! As readers of my column know, bonds no longer offer a safe alternative, with low yields and principal losses.
However there is great news…you can earn seven percent on your money and know your money is safe!
Safe Means Safe
I’ve been in the wealth management business for almost seventeen years now so I well understand when people say “safe” they mean “SAFE”. I can assure you when I use words I use them with intention so I’m not saying “safe” I’m saying “SAFE!!!”
For the last three years, my readers and my clients have had the opportunity to earn 7% or more by investing in what I call Double Secured First Trust Deeds. If you have been sitting on the sidelines unsure of how SAFE these assets really are you have missed out on great interest rates for three years.
In the last three years no client of ours has lost a cent of principal on their trust deeds and every client has earned 7% or more. There is no reason to expect any change in the security of trust deeds for many years to come.
The Trust Deed is secured first by real estate. Typically my clients are lending only 50% to 60% on a property based on today’s value confirmed with a current appraisal. This means the real estate is worth close to double the amount we are actually lending. This first layer of security by itself means trust deeds should be considered a great option for high income.
Because I am such a strong advocate for avoiding risk, we also recommend adding a second layer of security to a trust deed investment. I recommend to all investors of trust deeds that they ask for a Buyout Agreement.
The Buyout Agreement basically provides for an independent fund or investor to buy the trust deed from you if the borrower doesn’t pay you back. It’s like a get-out-of-jail-free card in Monopoly. If there is a problem, you implement the Buyout Agreement and are entitled to be paid every dollar you originally invested in the trust deed within 30 days!
Why would a fund or other investor be willing to do this? Remember how we are lending only 50% to 60% of the property value. This means if the borrower doesn’t pay the money back, either you or the Buyout Agreement investor gets to foreclose on the property. After foreclosure, the property is sold and someone may end up making significantly more than the 7% I’ve said could be made. Either way, you have safety and control.
All investments have risks, and a short article does not provide enough space to consider them all. However I have found that once my clients consider any risks compared to the potential yield they have been more than comfortable agreeing with me that this is currently the best safe money investment available.
We have provided several options to obtain additional information. First, any reader is able to receive a free electronic copy of my book, The Seven Percent Solution by calling or emailing our office. You can also order a physical copy of the book on Amazon.com.
We also offer a complimentary income review of your current investments to confirm the amount of interest you could expect to receive. Call the office to schedule this free review.
I strongly encourage you to educate yourself on this excellent fixed income investment option and see why You can earn 7% or more on your safe money.
William Jordan is a nationally recognized wealth manager and well known speaker on financial and investment topics. To ask a question or request an investment review meeting, contact his office at (949) 916-8000 or online at http://wjica.com. William Jordan Associates is a Registered Investment Advisor with the state of California. Past performance does not guarantee future results.